Which of These Savings Rates Is Most Favorable

question 8

Multiple Choice

Which of these savings rates is most favorable?

• A) 5% compounded annually
• B) 5% compounded semi-annually
• C) 5% compounded quarterly
• D) 5% compounded monthly

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Definitions:

West Africa

A region in the western part of the African continent, consisting of many countries, notable for its diverse cultures, languages, and histories.

Portuguese Merchants

Refers to traders from Portugal who were particularly active during the Age of Discovery, engaging in commerce around the world, especially in spices, gold, and slaves.

Mediterranean Atlantic

Referring to the area or regions bordering or near the Mediterranean Sea and the Atlantic Ocean, particularly influencing climate and trade.

Westerlies

Prevailing winds that blow from the west to the east in the temperate zones of the Earth.